Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200810/20081029/article_378571.htm
Earnings not so flashy
Created: 2008-10-29
PANASONIC'S quarterly profit slumped 16 percent as a strong yen, declining gadget prices and rising material costs chipped away at the Japanese electronics maker's earnings.
But Panasonic Corp stuck to its forecasts yesterday for the fiscal year ending March 2009, while admitting it was leery of what the United States financial crisis may bring for exchange rates, stock prices and global consumer spending.
A strong yen erodes the value of Japanese exporters' overseas earnings. The US dollar has slipped from about 107 yen (US$1.12) last month to nearly 90 yen recently, as jitters about a credit crunch, corporate failures and a global stock plunge set off gyrating currency-rate swings.
Osaka-based Panasonic has fared relatively better against the hammering from the strengthening yen than have some Japanese rivals, such as Sony Corp, which depends more on overseas sales.
Panasonic earned a group net profit of 55.46 billion yen for the July-September quarter, down from 65.81 billion yen in the same period the previous year.
Sales in the fiscal second quarter slipped 4 percent on year to 2.192 trillion yen from 2.286 trillion yen.
But Panasonic Corp stuck to its forecasts yesterday for the fiscal year ending March 2009, while admitting it was leery of what the United States financial crisis may bring for exchange rates, stock prices and global consumer spending.
A strong yen erodes the value of Japanese exporters' overseas earnings. The US dollar has slipped from about 107 yen (US$1.12) last month to nearly 90 yen recently, as jitters about a credit crunch, corporate failures and a global stock plunge set off gyrating currency-rate swings.
Osaka-based Panasonic has fared relatively better against the hammering from the strengthening yen than have some Japanese rivals, such as Sony Corp, which depends more on overseas sales.
Panasonic earned a group net profit of 55.46 billion yen for the July-September quarter, down from 65.81 billion yen in the same period the previous year.
Sales in the fiscal second quarter slipped 4 percent on year to 2.192 trillion yen from 2.286 trillion yen.
Agencies
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